Capital Investment Subsidy Scheme

Developing awareness for safe and healthy food has mentioned the benefits of organic farming, which is an all-inclusive system based on the basic principle of deducting the use of external aid and avoiding the use of synthetic fertilizers and pesticides to follow the health and food safety. The National Project on Organic Farming, which is the Capital Investment Subsidy Scheme for Commercial Production groups for the organic and biological groups has been introduced. The scheme is launched and managed by the Department of Agriculture, Cooperation, and Farmers’ Welfare through the National Centre of Organic Farming in collaboration with the National Cooperative Development Corporation (NCDC) of NABARD.

The objective of the Scheme

• To promote organic farming by making available organic inputs such as biofertilizers, Biopesticides, and fruit and vegetable market waste compost and thereby better return for the produce.
• To reduce the total dependence on chemical fertilizers and pesticides by increasing the availability and improving the quality of biopesticides, biofertilizers, and composts in the country.
• It increases agricultural productivity by maintaining soil health and environmental safety.
• It prevents environmental degradation.
• It also Converts the organic waste into plant nutrient resources.

The eligible organizations for the Capital Investment Subsidy Scheme are:

• Individuals
• Private entrepreneurs
• Biofertilizers and Biopesticides production Unit
• Fruit and Vegetable Waste Compost Unit
• Group of farmers/growers
• Proprietary
• Partnership firms
• Co-operatives
• Fertilizer industry
• Companies and Corporations
• NGOs
• APMCs
• Municipalities

Repayment period

The repayment period for the Biofertilizers/ Biopesticide Unit basically depends upon the cash flow, usually up to ten years with a grace of 2 years. The period for the Fruit and Vegetable Waste Compost Unit will depend upon the cash flow and may generally be up to 10 years with a grace period of 2 years

Time Limit for Completion

A time limit of a maximum of 15 months is prescribed for the completion of the projects from the date of sanction by the scheduled bank. In case of delay in completion with the justified reasons, a further grace period of 3 months may be allowed by the participating bank. In case the projects are not completed within the stipulated period, the benefit of subsidy is withdrawn, and the advance subsidy will be refunded.

Also Read: https://tractornews.in/articles/pm-kisan-maan-dhan-yojana/